Kenyan industry may suffer with investors being scared away

Kenyan industry may suffer with investors being scared away

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Category: Blog, Industry News
Posted by: AffPapa
Kenya

After some recent issues that the Kenyan gaming industry bumped into with Sportpesa, people are now worried that investors may not want to invest in the industry anymore.

It is no secret that the Sportpesa brand has been going through some trouble in the past few months from the boardroom to the Court of Justice, but with the continuity of the trend, it is believed that “If it is not nipped in the bud, it will cause a gloomy and fraught future for other businesses where success may become their downfall” according to the-star.co.ke.

Everyone from new outlets to government agencies to third-parties who are supposed to be “neutral and independent” to the situation have seemingly been taking sides and voicing their opinions, as well as engaging campaigns that smear the integrity of the company and its shareholders. This predominantly one-sided stance taken by everyone has further caused a negative stir in the direction of the brand.

From 2019 up to now, Interior Cabinet Secretary Fred Matiang’i made several accusations against some directors of many gaming companies in Kenya. These allegations included “money laundering, tax evasion, and some other unspecified activities.” These accusations led to the deportation of foreign investors, but the most interesting part is that Matiang’i hasn’t provided any evidence to support his claims and the actions taken by the government.

It is, however, notable that there are several companies (including companies in the betting industry) that have had tax disputes with the Kenya Revenue Authority without summons from Betting Control and Licencing Board (BCLB), some of these companies include Nakumatt and Keroche Breweries.

In 2017, “there have been speculation and rumors that some local shareholders have been scheming on how to wrestle SportPesa from the hands of ‘non-locals’” The Star reports. In light of how recent controversies were handled, The Star highlights it is important to stick to regulations and laws in order to reach the standard and keep private investors reassured.